Real Estate Council of Ontario (RECO) has frozen the accounts of Scarborough-based brokerage HomeLife Today Realty Ltd. after discovering a trust account shortfall of $580,000.
In a public advisory issued Wednesday, RECO said it identified a potential shortfall as part of a planned pre-inspection on Nov. 28. During its onsite inspection on Dec. 2, RECO confirmed the shortfall, which “the brokerage has been unable to correct.”
The brokerage presently has 18 agents.
RECO said the brokerage remains open, and the broker of record will ensure the orderly closure of transactions.
Freeze order in play
On Dec. 4, RECO issued a freeze order on the bank accounts of HomeLife Today Realty, and RECO received confirmation from the bank that all the accounts were frozen on Dec. 10.
“By issuing this freeze order, RECO has taken steps to protect the funds in the brokerage’s bank accounts,” reads the advisory. “When necessary, RECO issues freeze orders against brokerages to prevent funds from being withdrawn from a brokerage’s accounts to protect consumer deposits.”
RECO said it is “actively engaged in this matter and further actions may follow.”
What happens next
RECO is advising agents with outstanding commissions to file a commission protection insurance claim.
It clarifies that this is separate from the iPro Realty Ltd. event, and “will not be affected by other matters for which insurance claims are being made.”
Just weeks ago, the Ontario government announced it would take control of RECO effective Dec. 4 by way of an appointed administrator, Jean Lépine.
The decision came following Minister Stephen Crawford’s review of a scathing audit by Dentons Canada LLP of RECO’s handling of the $10-million iPro Realty Ltd. trust account scandal.
Brokerage has a 20-year history
HomeLife Today Realty opened in 2006.
At that time, then-broker of record B. Zorena Sawh told Real Estate Magazine the office had 28 sales reps and plans to expand.
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.
